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Economy
In reply to the discussion: Weekend Economists Out on an Idle Idol Idyll November 15-17, 2013 [View all]xchrom
(108,903 posts)24. JPMorgan Sets Tentative $4.5 Billion Accord for Mortgage Bonds
http://www.bloomberg.com/news/2013-11-15/jpmorgan-reaches-4-5-billion-mortgage-bond-deal-with-investors.html
JPMorgan Chase & Co. (JPM), enmeshed in legal battles with regulators, U.S. agencies and clients, agreed with 21 institutional investors to pay $4.5 billion to resolve claims the bank sold faulty mortgage securities.
The preliminary deal covers 330 mortgage bond trusts issued between 2005 and 2008, JPMorgan said in a statement yesterday. The accord still needs approval from trustees overseeing those securities and may be subject to court review, JPMorgan said.
The agreement adds to the litany of litigation expenses absorbed by JPMorgan, the largest U.S. bank. Last month, the company agreed to pay $5.1 billion for claims that the lender misrepresented mortgage bonds sold to Fannie Mae and Freddie Mac. Chief Executive Officer Jamie Dimon has warned that more legal disputes lay ahead, and the bank has disclosed at least eight Department of Justice investigations.
With every one of these that gets settled, we are theoretically closer to the end, said Nancy Bush, a bank analyst who founded NAB Research LLC in New Jersey. But the offset is that every one of these settlements seems to beget yet another lawsuit from somebody else. Im losing track of them, we need a scorecard.
JPMorgan Chase & Co. (JPM), enmeshed in legal battles with regulators, U.S. agencies and clients, agreed with 21 institutional investors to pay $4.5 billion to resolve claims the bank sold faulty mortgage securities.
The preliminary deal covers 330 mortgage bond trusts issued between 2005 and 2008, JPMorgan said in a statement yesterday. The accord still needs approval from trustees overseeing those securities and may be subject to court review, JPMorgan said.
The agreement adds to the litany of litigation expenses absorbed by JPMorgan, the largest U.S. bank. Last month, the company agreed to pay $5.1 billion for claims that the lender misrepresented mortgage bonds sold to Fannie Mae and Freddie Mac. Chief Executive Officer Jamie Dimon has warned that more legal disputes lay ahead, and the bank has disclosed at least eight Department of Justice investigations.
With every one of these that gets settled, we are theoretically closer to the end, said Nancy Bush, a bank analyst who founded NAB Research LLC in New Jersey. But the offset is that every one of these settlements seems to beget yet another lawsuit from somebody else. Im losing track of them, we need a scorecard.
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